Government considers weekly petrol pricing amid regional tensions

ISLAMABAD: The government is considering fixing petrol prices on a weekly basis in response to the tense regional situation, sources said on Thursday.

According to officials, several proposals are under review to introduce a new mechanism that would determine fuel prices every week instead of the current schedule.

Sources said authorities are examining a pricing model previously used during the COVID-19 period. The main objective of the proposed weekly pricing system is to discourage hoarding and market manipulation by dealers, particularly when price increases are anticipated.

Officials fear that expectations of higher fuel prices could prompt dealers to stockpile petroleum products, potentially creating artificial shortages in the market.

Sources warned that if regional tensions persist, petrol prices could rise by up to Rs20 per litre, while diesel prices may increase by as much as Rs45 per litre in upcoming adjustments.

However, the weekly pricing mechanism remains under discussion and no final decision has been announced so far.

Meanwhile, oil companies across the country have introduced supply limits for petrol pumps amid the escalating situation in the Middle East. Dealers said fuel deliveries are now being made based on the average sales of the last six months.

Rising global crude oil prices have further increased concerns about a significant hike in local petrol and diesel prices. Dealers also reported that many petrol pumps are placing unusually large fuel orders in anticipation of higher prices and potential profit margins.